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. Devaluation of currency leads to
(1) Fall in domestic prices
(2) No effect in domestic prices
(3) Increase in domestic prices
(4) Any of the above
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Answer Posted / babu.t
Devaluation leads to increase the price of the domestic goods.
We have to give higher price for the domestic goods because value of the money diminished in terms of foreign currency. But at the same time price on domestic goods by foriegners
falls.It becomes more attractive to foreigners
| Is This Answer Correct ? | 31 Yes | 7 No |
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